Summary
In January 2025, the housing market experienced a surge in inventory as homesellers began to reenter the market. New property listings rose by more than 10% compared to January 2024. Additionally, the total number of homes actively available for sale had a 24.6% increase over January 2024. Home listing prices continue to grow, although more small homes are available, making the nation’s median list price lower than last January.
Report
Housing inventory continues to be a major story. We’re seeing significantly more homes actively for sale compared to last year, a trend that’s been ongoing for 15 straight months. Not only are more homes actively on the market but the total number of unsold homes including those under contract is also up, giving buyers more options. Interestingly more sellers entered the market in January. New listings were up compared to January 2024 and significantly up from December. This suggests sellers are becoming more comfortable with current market conditions even with January mortgage rates on average being 25 basis points higher than in December.
The median home price was slightly down compared to January 2024. While several factors can influence price, the primary downward trend is mainly due to an increased number of smaller, less expensive homes, being up for sale. Looking at the price per square foot, home prices are actually continuing to rise. So, while the overall median price might suggest a softening Market, the underlying value of homes is still appreciating. Also, homes are staying on the market a bit longer compared to last year. While January was the slowest we’ve seen in a few years, it’s important to remember that homes are still selling faster than they were pre-pandemic.
Finally, there was a slight increase in the percentage of homes with price reductions in January. This could be an indicator of further price adjustments in the coming months as sellers adapt to the current market dynamics. However, it is important to note that home price reductions often happen after the holidays. The bottom line is the January 2025 housing market was characterized by increased inventory, a Resurgence of Sellers, and a nuanced price picture. While the median prices down due to the types of homes listed, underlying home values continue to climb. Homes are taking a little longer to sell and we’re seeing more price reductions it’s an evolving Market.
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